Doylestown Auto Repair

Tesla investors sue to stop Elon Musk’s ‘unchecked’ use of Twitter

Audi Repair Shop Doylestown
Call 267 279 9477 to schedule a appointment

The SEC isn’t the only one concerned that

Elon Musk may have crossed the line

(again) with his tweets. A group of institutional investors

has sued

to stop Musk’s “unchecked use of Twitter” to make “repeated misstatements” they believe hurt

Tesla

and, of course, its shareholders. Musk allegedly violated his duties to investors when he tweeted that Tesla would make “around 500k” cars in 2019, and backers want permanent safeguards to be sure this doesn’t happen again.

The SEC has already

asked a judge

to find Musk in contempt of his settlement after he didn’t appear to have cleared the “500k” tweet with the attorney responsible for vetting his tweets.

We’ve asked Tesla for comment. This isn’t the greatest threat Musk faces, since the SEC could suspend him from running Tesla, or ban him outright. However, it certainly adds to the pressure on the executive to rein in his comments, whether it’s voluntary or through the courts.

Reporting by Jon Fingas for Engadget

.

Related Video:

from Autoblog https://ift.tt/2tWw7pG